Maximizing Rewards: How to Combine Cash-Back and Travel Cards

Navigating the world of credit card rewards can feel like a complex game, but with the right strategy, you can unlock significant value from your spending. While many enthusiasts focus solely on points and miles, I have found that a balanced approach that includes cash-back cards can provide maximum benefits. Among my collection of credit cards, one stands out as my go-to for everyday purchases: the Apple Card. Here’s how I integrate cash-back and travel rewards cards to optimize my rewards strategy.

My credit card setup is designed to prioritize earning transferable rewards while still allowing for flexibility with cash back. The two primary cards I rely on for most of my daily spending are the American Express Gold Card and the Chase Sapphire Preferred Card. Both of these cards earn valuable Membership Rewards and Ultimate Rewards points, which I can transfer to various travel partners for enhanced value.

The Chase Sapphire Preferred Card is particularly useful for travel-related purchases. It offers a robust suite of travel protections, making it my preferred choice for booking flights. Additionally, it serves as a reliable backup dining card for establishments that do not accept American Express. In moments when I find myself short on Chase points, I might temporarily shift all my spending to the Sapphire Preferred to quickly replenish my points balance, even if it means earning fewer points per dollar than I would with other cards.

In addition to my primary cards, I also rotate in the Capital One Savor Cash Rewards Credit Card and the Capital One VentureOne Rewards Credit Card when I want to earn more cash back. This combination allows me the flexibility to convert cash back into Capital One miles if I choose. While I have several other cards for specific perks—such as the Delta SkyMiles® Gold American Express Card for a free checked bag and the Amazon Prime Visa for 5% back on Amazon purchases—my core strategy revolves around a mix of cash back and travel rewards.

Throughout the year, there are times when I find myself points-rich but cash-poor. During these periods, I pivot my focus towards cash back. Cash rewards provide a level of flexibility that points and miles often lack, especially when it comes to redemption. I tend to experience analysis paralysis when it comes to redeeming points, often waiting for the perfect opportunity that matches or exceeds the valuation from travel experts. This is particularly true during the holiday season when I aim to earn cash back to fund gifts for friends and family.

You might wonder why I don’t simply focus on accumulating points and then convert them to cash back. The reality is that most credit card points do not convert at a favorable rate. For instance, American Express points are worth only about 0.6 cents each when redeemed for cash back, which is significantly less than their value when used for travel.

This is where the Apple Card comes into play as my catch-all card. It offers at least 2% cash back on all purchases made through Apple Pay. While I primarily use my Sapphire Preferred and Amex Gold for most of my spending, the Apple Card fills in the gaps when my other cards earn only 1 point per dollar spent in non-bonus categories. It’s perfect for everyday expenses like drugstore purchases, utility bills, and other spending that doesn’t fit neatly into bonus categories.

Another significant advantage of the Apple Card is its convenience. Since I primarily use Apple Pay, I don’t even need to carry the physical card with me. Most merchants now accept Apple Pay, so I rarely encounter issues with payment acceptance. In the rare instances when a merchant does not accept it, I can easily use my Capital One VentureOne Card to earn 1.25 miles per dollar spent.

One of the standout features of the Apple Card is its Daily Cash rewards system. Unlike many credit cards that deposit cash back at the end of the billing cycle, the Apple Card allows you to earn cash back daily, which is deposited into your Apple Cash account. This means you can use your cash back immediately for purchases or transfer it to your bank account.

While points and miles form the foundation of my credit card strategy, cash-back rewards play an essential role in my overall approach. If you’re looking to diversify your credit card rewards, consider adding a cash-back card to your wallet. There are numerous excellent options available, many of which come with no annual fees.

Credit cards can be transformative, enabling you to leverage everyday spending for cash back or travel experiences that might otherwise be out of reach. By combining cash-back and travel rewards cards, you can create a strategy that maximizes your benefits and enhances your financial flexibility. Whether you’re a seasoned traveler or just starting to explore credit card rewards, a well-rounded approach can help you achieve your goals.